Regulatory Dynamics

1. The country's 14th Five-Year Plan mentions the development of digital currency.

The full text of the "Suggestions of the Central Committee of the Communist Party of China on Formulating the 14th Five-Year Plan for National Economic and Social Development and the Vision for 2035" recently released mentions "steadily advancing the research and development of digital currency." The planning suggestions point out that it is necessary to build a modern central banking system, improve the monetary supply regulation mechanism, steadily advance the work of digital currency research and development, and improve the market-oriented interest rate formation and transmission mechanism.

2. Hong Kong plans to establish a licensing system for virtual asset service providers.

The Hong Kong Special Administrative Region Government's Financial Services and the Treasury Bureau recently released a consultation paper seeking opinions on amending the "Anti-Money Laundering and Counter-Terrorist Financing Ordinance." The document proposes the establishment of a licensing system for virtual asset service providers, stipulating that those engaging in virtual asset trading platform operations in Hong Kong must apply for a license from the Securities and Futures Commission and meet relevant requirements. Operating without a license or violating regulations may face criminal penalties.

3. Russia may require the declaration of income from cryptocurrency transactions.

The Russian parliament is discussing a new bill that may require citizens to report their "electronic" asset earnings and holdings on overseas platforms to tax authorities. If annual transaction volumes exceed a certain amount, reporting will be necessary. This bill may impact cryptocurrency trading.

4. The Netherlands issues the first cryptocurrency platform license

The cryptocurrency exchange BLOX has become the first retail cryptocurrency platform to obtain an operating license in the Netherlands after the implementation of the EU's 5th Anti-Money Laundering Directive. This means that cryptocurrency remains accessible to the general public. In the Netherlands, all companies that allow users to buy, sell, trade, and hold cryptocurrencies must register with the central bank.

5. South Korea plans to amend laws requiring the disclosure of cryptocurrency user identities.

The Financial Services Commission of South Korea is seeking to amend the law, which may require domestic virtual asset service providers to report customer names. This initiative aims to prevent money laundering. The amendment will require relevant companies to use real-name accounts when transacting with customers and to meet multiple regulatory requirements.

6. Venezuela launches state-owned cryptocurrency exchange

Venezuela has launched a state-owned cryptocurrency exchange called VEX, which supports trading of Petro, Bitcoin, Litecoin, and DASH against the Bolívar. The exchange uses P2P technology and can be accessed through a government-issued cryptocurrency wallet application.